/biz/ - Business & Finance

>>12550498
what kind of mortgage fixed or variable?

>>12550523
Fixed. 3.5 percent

>>12550498
buying a house is a meme in today's market. you are liable for: everything that goes wrong/breaks; losses if market goes down; insurance on property; increasing property taxes; HOA fees (if applicable); fees if you decide to sell; etc. But hey! At least you got $4k in equity now!

You idiot. You should be paying double the principal every month to beat the Interest. But I bet you bought a house you can barely afford and are having problems even paying the minimum.

>>12550555
Checked but wrong. I bought a new build house 5 years ago for 240. No issues at all since it was new build. Already got 80-100k increase in value.

They also have insurance to pay for issues that arise if you want to do that. Enjoy living in moms basement looser.

>>12550498
If you got in under 4% you're doing ok. But it sounds like you didn't understand the amortization schedule in your loan. Most of the interest is up-front in a mortgage, but as you pay it down, you'll see a larger portion go toward principal.

But don't put much toward paying in off. You're much better of to put that cash into something like an index fund, since it'll be more effective. Not only do you stay semi-liquid, but you'll be debt free faster since the S&P usually grows faster than your mortgage rate.

>>12550581
>buying a house in TODAYS market
you bought near the bottom of housing prices in most areas. congrats. I make ~90k and can't afford to buy in current market conditions in the PNW.

>>12550555
This but for the wrong reasons. It's simply a seller's market. Keep buying high and selling low, /biz/

>>12550637
Houses are just now getting around 2008 levels.

Average salaries are higher than 2008 now. It’s still a good time to buy.

>>12550528
At least took one good choice...everyone without a fixed rate will get rekt in the next few years.

>>12550751
This and realestatepilled

>>12550637
>>12550751
>>12550765

Real estate is on a much longer cycle than the stock market, good lucky trying to time it. You might not see another bottom in your life time.

>>12550829
I agree. These “market is gonna crash” people are neets who know nothing.

>Pay is way up since 2008, especially in my area
>they are much more stringent with giving out loans now compared to 2008.
People who have never bought and had to go through verifications would not know this
>goods ie clothes and electronics ect, are the same price, or cheaper than 2008
>gas is much cheaper than 2008
>the increase in “inflation” ie food cost ect is minimal to anybody who can afford a house

The market WILL NOT crash for many many years. Keep renting goyims. I have 2 rental properties. Thanks for the passive income.

>>12550612
How is it even legal to charge more interest up front? It should be the 3.5% annually..it's bullshit that you're barely even touching the principal for years. Most people end up paying double for their house after interest. And even if you pay more to pay it off early you're just paying the interest anyway...

>>12551182

No, if you pay more than your monthly minimum, that extra amount can be designated to go toward your principal. Your monthly mortgage amount won't change, but future interest will be less, due to the smaller principal that the interest is derived from. And your loan will be paid off in less time.

>>12550893
I agree these crypto going to crash people know nothing

>>12550498

>insurance

Lol thats just fucking scam. Do you stop paying insurance after you've paid more interest than the loaned amount?

>>12551232

Insurance is required by the bank. As long as you owe mortgage, you are required by the bank to have insurance on the house. That way their ass is covered, if your house burn down.

>>12551182
This is true >>12551213 but also your rate is just a hair over 3%, that's a really low rate. Yes, you pay interest, but over the 30 year term, your extra money if invested will completely outstrip that.

>>12550751
>Average salaries are higher than 2008

JFL do people actually believe this

>>12550893

>Wishful thinking

>>12551182
You are so stupid it hurts. The fact that you even think you should have a say on what's legal and what isn't is hilarious.
You are always paying the same interest rate every month.
>How is it even legal that 4% of 500k is more than 4% of 30k???

>>12551278
Pay at my job has went from 28hr to 36hr during this period, as has many other jobs. So yes, pay is way up. You wouldn’t know being a basement dweller still getting allowance though.

Can't believe it's even legal to have an amortization schedule like they do on a 30 year loan, what a complete goddamn ponzi scheme.

>>12551271

Paying the mortgage reduces your risk though and doesn't expose you to market fluctuations. That means you won't get instantly obliterated if the value of your house and your investments plummet in crash.

i can't believe it's legal

The reason that you pay front loaded interest is so that there is a smaller chance the lender will get totally fucked if you default.

Retard here. Quick question about mortgages. Can I rent a property out if I’m paying the mortgage and can I put that money back in the mortgage.

>>12550637
>>12550751
deluded goys buying Chinese bags

>>12551365
yes.

>>12551307
Congratulations, your salary was one of the few that got adjusted for inflation. Meanwhile purchasing power of the USD fell and commodity prices went up, so your $36, which is barely an improvement over the original $28, doesn't go nearly as far as it originally did.

>>12551370
How is this legal?

>>12551390
this is actually their fault. businesses and employees compete in terms of absolute salary and even signing bonuses because that's what the employees respond to. Even though the business is probably in a better position to manage the employees purchasing power than the employee. on the other hand cpi is a scam

>>12551390
My salary barely matched inflation but

Everything is cheaper or the same price when it comes to almost every single “good” I buy. Furniture, TVs, t shirts l, jeans, ect ect ect

House prices are still the same. So look at how much more home purchasing power that I, as well as many many Americans have compared to 2008.

>>12551315
I'd argue the opposite way. If you're in fired-up hurry to "get rid of this horrible debt" and keep dumping extra cash into your mortgage, it may feel good. But if you run into something like a long-term job loss where your emergency fund gets depleted or you have emergency payments, you can't get the cash from those extra payments back, they're gone. You could lose your home.

Instead, if you stay liquid, it's more resilient in the long term. Even with a downturn, you'll just need to make your minimum payment from your nest egg and have way more staying power in case of an emergency.

That's the way I'm going, anyway.

same could be said for purchasing a house in the first place.

>>12550528

As a guy who works behind the scenes in mortgage you're very lucky or you're eligible for a VA loan. interests are rising and WILL rise for the forseeable future to likely more than 5.75%.

3.5% is peanuts if you look historically at ~18% interest rates back in the late 80s. You will most likely never need to refinance unless you make more money and want to drop to a 15 yr

>>12551250
up until over 20% typically unless the bank fucked you into a contract that says otherwise

>>12551541
Why would he refi when he could just pay the extra on the principal

>>12551541
Why would I ever want to refi to a 15 when I could just pay more each month?

>>12550498

Wow, that's a terrific allocation of capital there wagie...

>Housecucks

>EVER

>>12551541
You know what you're talking about. It's a VA loan. :)

>>12551790
He’s probably a Jew mortgage broker who wants you to refi so he and his company can hit you with closing costs and fees again.

>>12550564
>But I bet you bought a house you can barely afford and are having problems even paying the minimum.

Welcome to the Canadian housing market.

I ran into a home builder here who just sold a newly built plywood box finished in the cheapest finishes and floors and trim that you could get at Ikea/Home Depot, and he got 1.9 million for it.


But it gets better, he sold it to a couple in their 30s who SOMEHOW had 1 MILLION fucking dollars to put down on it, and had to finance the other $900K.

Let that sink in....

You magically have 1 million dollars that you could be earning 6% easily in the markets, but INSTEAD, you put all of it into a plywood fucking box and still paying 3.5% interest on a loan for the remainder.

JESUS FUCKING CHRIST, I HOPE THIS COMES TUMBLING DOWN.

How could any man be that much of a cuckold?

Everyone knows that women have a nesting instinct because of their sex holes when they give birth, it's in their chemistry, but what kind of goddamn cuck does one have to be to be infected with the same nesting instinct? That's got to be a soi-blood concentration in the 1,000 ppm range.

Fuck me.

>>12551852
but you get to live in the box anon

>>12551803
my parents bought a house when double digit interest was still the norm and had to refi several times to get under 5%. also they went full retard with renovating it under the mortgage. and they got hosed in 2008/9. and their main income is from fed employment. and they are still paying for my moms meme degree from her career change #2.5
they're unironic teetotalers that dot every i, have perfect credit and have unshakable belief in institutions, and love to vote in every minuscule election. But they're still living paycheck to paycheck.

>>12551852
well, a house is a place to live and directly affects your lifestyle. you can place your bets that the growth of the market exceeds the growth of the housing market but some people just want a nice place to live in close to work or good schools and stuff.

>>12551790
To get a lower interest rate, brainlet.

>>12550893
Lol u clearly dont understand supply and demand.

>>12552028
If you think he will ever get lower than 3.5 in the future you a literal retard.

>>12552062
The market seems to understand it just fine. As does the 40% increase in my area over the last 5/6 years. Stay poor, keep paying you rent because “home ownership is a meme”

>>12550498
Still better than 14k+ for a rent/lease. At least you can get the principal back when you sell and you get better value for your buck than renting.

>>12552205
>At least you can get the principal back when you sell and you get better value for your buck than renting.

Or not...

Prices go down too, right?

>>12551440
good explantion

>>12550498
Moved out of the city, have a 200k modern and good isolated home (which is considered low in my country). Interest is 1,66 %, but my net pay is actually lower since I'm able to get partly my interest back from my paid taxes. Since I work often from home I'm not that bothered by the daily commute

Basically I'm building equity for 500 euros a month while living comfy.

It's not really your house until the last loan payment.

>>12551292
He paid 4k to principal and 11k to interest tax and insurance. That's not 4% asshole

>>12552254
>Interest is 1,66 %

Where the hell is this?

That's free money.

>>12552253
Glad you found it helpful. I've been thinking about this strategy a lot and I think it's pretty solid.

>>12550498
you're not supposed to pay that, tenants are

>what is amortization

>>12551852
How much is 2 million maple leaves in real money?